TORONTO - CIBC (TSX:CM) has agreed to pay US$149.5 million to settle a claim with the Lehman Estate, which was set up after the collapse of a onetime Wall Street giant.
The claims were filed against CIBC and numerous other financial institutions in September 2010, two years after the venerable investment bank Lehman Bros. went bankrupt.
The firm's collapse was part of a credit crunch linked to the U.S. housing and mortgage industries and made worse by the use of complex financial instruments.
The estate claimed CIBC was obliged honour a commitment made under one of those agreements before the collapse.
The Toronto-based bank originally reduced its obligation to zero and recognized a US$841 million gain after Lehman filed for bankruptcy in September 2008.
The collapse of a firm that had been considered too big to fail sent shock waves through the global financial industry and contributed to the 2008-09 recession.
What Canadian Banks' Profits Can Buy You
Canada's Big Five banks recorded a total profit of $7.5 billion in the three months ending July 31, 2012. Here's what that money can buy you.
Tuition for 1,397,689 undergrads
The average undergraduate tuition in Canada today <a href="http://www.statcan.gc.ca/daily-quotidien/110916/dq110916b-eng.htm" target="_hplink">stands at $5,366</a>.
5 billion fees for using another bank's machine
Banks can charge up to $2 or even $2.50 for non-customers using their machines, but we've used the more common $1.50 charge for this calculation.
1.36 billion fresh whole chickens
The going retail rate for a whole chicken in Canadian supermarkets <a href="http://www3.agr.gc.ca/apps/aimis-simia/rp/index-eng.cfm?report_format_type_code=21&action=gR&signature=DE08B1F45FFD7EDA1F7CEEA304E235E2&pdctc=&r=116&pTpl=1&btnDownload=View" target="_hplink">was $5.52 in June of 2012</a>.
2.5 billion rides on Toronto's streetcar
The cash fare rate on the TTC is $3.
1,978,891,820 poutines at Harvey's
Assuming a retail price of $3.79 each.
1.25 million 1978 Darth Vader figurines
They go <a href="http://actionfigures.about.com/od/historyofactionfigures/tp/top_5_starwars.htm" target="_hplink">for about $6,000 each these days</a>.
The average annual salary of 163,043 Canadians
The average salary in Canada is <a href="http://www.workopolis.com/content/advice/article/1821-how-much-money-are-we-earning-the-average-canadian-wages-right-now" target="_hplink">around $46,000</a>.
4.54 billion medium-sized double-doubles at Timmies
Assuming a pre-tax price of $1.65 per cup.
7,500 performances by Sting at your birthday party
It's estimated the singer <a href="http://www.thestar.com/news/gta/article/1079200--sting-plays-toronto-woman-s-45th-birthday-bash" target="_hplink">charges $1 million per performance</a>.
468,896 Honda Civics
The basic model at the suggested retail price of $15,995.
48 trips to the moon
British company Excalibur Almaz is <a href="http://www.huffingtonpost.com/2012/06/22/excalibur-almaz-tickets-moon-photos_n_1619761.html" target="_hplink">selling tickets for trips to the moon at a cool $155 million</a>.
The entire economy of the Bahamas
The Bahamas <a href="http://en.wikipedia.org/wiki/List_of_countries_by_GDP_(nominal)" target="_hplink">produced $7.7 billion in wealth in 2011</a>, slightly more than Canadian banks' $7.5 billion in profits in a three-month period.